Moving on from the much hyped acquisition last week, Verizon has announced yet another billion dollar acquisition. In the latest announcement, the telecom giant announced that it is acquiring Fleetmatics for $2.4 Billion in cash.
Fleetmatics is a Dublin (Ireland) based startup working in the field of telematics. The acquisition comes as a strategic move from Verizon which is trying to strengthen its portfolio. The deal will see Verizon focusing on the enterprise products made by fleetmatics in areas of logistics and moving workforce.
Fleetmatics provides SaaS based services and enterprise solutions powered by GPS to the bigger companies with a lot of workforce on the move. At the given point, the company has over 1200 employees catering to the needs of over 37,000 customers and 737,000 subscribers. Some of the most important services of the company include billing, dispatching, car security and location services.
As part of the deal, Fleetmatics will join Verizon Telematics, a subsidiary of the parent company working in the telematics field. The company has been showing its aggressive approach since a bit of time and continuing the same, it had even acquired Telogis in June. The financial terms of that deal were not disclosed.
Off late, Verizon has been seeing a decline in its core mobile service business and if the industry experts are to be believed, the cash in bank accounts in now being used to develop a portfolio of varied services in various fields. With AOL and Yahoo, the company has made a great entry in the media & advertising segment and at the same time, the subsidiary is taking good care of the telematics scenario.
The companies expect to close the deal by end of this year.